Divorce can be a tough time with many details to manage, including health insurance. Although it might not be your first concern, it’s essential to address how divorce impacts coverage for you and your family. Planning ahead can make this transition smoother.

How Divorce Affects Health Care Coverage

Typically, couples share a health insurance plan, often through one spouse’s employer. During the divorce process, both partners remain covered under the plan. However, once the divorce is finalized, the spouse who is not the policyholder loses coverage and must find their own insurance.

Why Health Insurance Matters in Divorce

Health insurance often gets overlooked during divorce discussions. Many assume it’s a given, especially since one partner may have been paying the premiums automatically. But it’s crucial to actively include health coverage in negotiations. One spouse will need to secure new coverage, and it’s likely the first time they’ll be responsible for their own premiums. Understanding what type of insurance fits your needs and budget is essential.

Health Insurance Options After Divorce

Here are some options to consider for health insurance post-divorce:

1. COBRA
   • Overview: The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows individuals to continue their group health insurance after certain life events, like divorce.
   • Pros: You have 60 days to decide and can stay covered for up to three years.
   • Cons: It can be costly, as you may have to pay the full premium plus a small administrative fee. It’s advisable to explore other options first.
2. Employer Coverage
   • Overview: If you have a job that offers health insurance, this can be a strong option. Employers usually cover a portion of the premium.
     1. Keep in mind that you usually have just 30 days to choose this type of coverage after a qualifying event outside of your company’s annual open enrollment period.
   • Benefit: Coverage through an employer may be better than individual plans and is typically more affordable.
3. Health Insurance Marketplace (ACA Plans)
   • Overview: The Affordable Care Act (ACA) provides a platform for individuals to buy health insurance. Plans must cover essential health services.
   • Advantage: Many individuals qualify for subsidies, making coverage more affordable. ACA plans also cover preexisting conditions.
4. Medicaid
   • Overview: For those with low income, Medicaid offers low-cost or free health care coverage.
   • Consideration: Coverage options vary by state, and while out-of-pocket costs are low, finding providers may be challenging in some areas.
5. Short-Term Insurance
   • Overview: This provides temporary coverage and can fill gaps during transitions.
   • Limitation: Short-term plans may not cover essential health benefits and can be harder to obtain if you have preexisting conditions.
6. Private Insurance Plans
   • Overview: If other options aren’t available, you might consider purchasing a plan from a private company.
   • Caution: These plans may have significant limitations, so it’s crucial to understand the specifics before enrolling.

Health Insurance for Children

Children can typically stay on the existing insurance plan without interruption. They may also switch to the other parent’s plan or be covered by both. When determining insurance for children, federal law mandates that medical support must be included in any child support agreement.

In cases where parents can’t agree on coverage, a court may step in to decide. Families who earn too much for Medicaid but too little for private insurance can explore the Children’s Health Insurance Program (CHIP), which offers assistance based on income eligibility.

Moving Forward After Divorce

Understanding your health insurance options is crucial for making informed decisions post-divorce. Consulting with an experienced insurance agent can help you find the best plan for your needs and budget. Additionally, a knowledgeable attorney can assist with the negotiation process, ensuring all aspects of your divorce, including health coverage, are adequately addressed. Many divorce lawyers offer free consultations, providing a valuable opportunity to ask questions and prepare for what’s ahead.